The Government has agreed a draft deal with the European Commission on the nitrates directive, the controversial EU legislation that protects groundwater from agricultural pollution.
Under the agreement the commission will drop its 12-year legal action against Ireland if the Government introduces tougher penalties on farmers who break regulations that limit the use of fertilisers on their land.
It will also sanction the Government's proposed action plan on nitrates, which will force farmers to invest in manure storage facilities and limit the time of year and areas where farmers can use organic and chemical fertilisers.
"We feel the content of the action plan on implementing the directive is right and I can confirm that the commission in principle has agreed to it," said a spokeswoman for environment commissioner Stavros Dimas yesterday. "But Ireland must bring up to speed its penalty legislation before we can agree to drop the legal action."
Ireland has been resisting the introduction of fertiliser limits but is now being forced to implement the nitrates directive by Brussels, which is threatening to impose daily fines under tough EU environmental legislation.
The implementation of the directive has become a major political issue, with farm bodies temporarily pulling out of the national partnership talks this year. They claim that strict limits on fertiliser use would drive Ireland's most progressive farmers out of business.
The deal agreed by Department of Agriculture and commission officials does not directly address a key demand of farmers - that they be granted an exemption from the limit of 170kg per hectare a year on fertiliser use included in the directive. Instead, the Government will have to apply to a committee of national experts from all 25 EU states for a derogation to enable farmers to spread up to 250kg a hectare per year.
However, commission sources indicated last night that the signs were "relatively encouraging" on this point and a derogation could be in place by January 1st.
To enter into force the deal must be approved by the legal service of the commission. However, commission sources said this should be a formality if the Government passed new legislation to introduce tougher fines on farmers who break the regulations. Under the State's proposals farmers can be fined a maximum of €3,000 if they use too much fertiliser. The commission fears this would not act as an adequate disincentive.
The commission's legal action against Ireland is the second longest European legal action outstanding against the State. The longest dates from 1990 and also involves Ireland's non-compliance with environmental standards with regard to water quality.